Agency
A seller's agent who also represents investors and is considering purchasing the listed property must:
AProceed without disclosure since they are the agent, not the buyer
BDisclose the interest to the seller and obtain written consent before making any offer✓ Correct
CResign from the listing before considering purchasing
DGet AREC's permission before submitting an offer
Explanation
A licensee considering purchasing a client's property must fully disclose their interest and obtain the client's written consent. Failure to disclose is a breach of the fiduciary duty of loyalty and is a license law violation.
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
State-Specific Concepts
AREC RegulationLicense Law
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